Doing business in China is not just about understanding the dynamics of the market, but also about successfully navigating the world of Chinese culture and etiquette. Personal relationships, known as “guanxi,” play a crucial role in the Chinese business world and are key to building trust and credibility. Discover the essential rules for building solid, professional relationships in China.
1. The Concept of Guanxi
What does it mean:
Guanxi refers to the network of personal and professional relationships based on mutual trust, respect, and shared benefits. It is the foundation of social and business interactions in China.
Why it's important:
- Business decisions are often based on the quality of personal relationships.
- Good guanxi can open doors and overcome bureaucratic obstacles.
How to build it:
- Show respect and genuine interest in your Chinese partners.
- Invest time in getting to know your interlocutors on a personal level, not just a professional one.
2. Prepare yourself with care
Why it's important:
Planning and attention to detail demonstrate professionalism and respect.
How to do:
- Study the company and Chinese culture before the meeting.
- Bring materials translated into Chinese, preferably Mandarin.
- Be prepared for detailed discussions, as the Chinese value precision and transparency.
3. Exchange of Business Cards
Why it's important:
The exchange of business cards is an important ritual that establishes the first formal contact.
Rules to follow:
- Present your card with both hands, with the Chinese side facing the recipient.
- Receive the ticket with both hands and read it carefully before putting it away.
- Avoid writing on the ticket or putting it in your pocket without looking at it.
4. Communication in China
Why it's important:
Communication in China is often indirect and diplomatic, avoiding conflict and categorical statements.
How to do:
- Use formal and respectful language.
- Avoid direct confrontation or openly contradicting your interlocutor.
- Pay attention to nonverbal communication, such as body language and tone of voice.
5. The Role of Hierarchy
Why it's important:
Hierarchy is deeply rooted in Chinese culture and influences business relationships.
How to do:
- Always address the highest ranking person first.
- Use professional titles to show respect (e.g. Director Wang or President Li ).
- Sit where directed during meetings, as seating is often assigned by location.
6. Business Meals
Why it's important:
Meals are a crucial opportunity to build trusting relationships.
Rules to follow:
- Let the guest choose a seat and start eating.
- Avoid refusing a toast, as it may be interpreted as disrespectful.
- Show appreciation for food and company.
7. Gifts in Business
Why it's important:
Exchanging gifts is a common practice to show gratitude and strengthen relationships.
Rules to follow:
- Choose quality gifts, avoiding items associated with bad luck (such as watches or umbrellas).
- Present the gift with both hands and don't be surprised if it isn't opened in front of you.
- Show modesty in receiving gifts, but always accept them with gratitude.
8. Patience in Decision Making
Why it's important:
In China, decisions take time and often involve multiple levels of approval.
How to do:
- Show respect for the decision-making process and do not apply pressure.
- Prepare detailed proposals that can be reviewed internally.
- Focus on building long-term relationships, rather than immediate results.
9. Digitalization and WeChat
Why it's important:
WeChat is an essential communication tool in China, used for both personal and professional purposes.
How to do:
- Connect with your partners via WeChat for quick messages and updates.
- Use the platform to send documents, share updates, and strengthen relationships.
Doing business in China requires a combination of preparation, cultural sensitivity, and the ability to build personal relationships. Adhering to the rules of etiquette demonstrates your commitment and willingness to integrate into a market full of opportunities. With the right approach, you can build a strong and lasting guanxi, which will be the basis for success in your business relationships.